The Nigerian government has recently announced the introduction of a new system of rates within the mining sector, with the aim of enhancing the ease of doing business and reinforcing ongoing reforms. Segun Tomori, the special assistant on media to the Minister of Solid Minerals Development, Dele Alake, disclosed this latest development in a statement released on Thursday.
The primary objective of these new rates is to demonstrate the federal government’s commitment to increasing revenue from solid minerals, thus enhancing service delivery and the mining sector’s contribution to economic development. Moreover, it is intended to promote a fair and conducive environment for investors and industry players.
Under this revised rate system, individuals and companies applying for a Mining Lease (ML) licence will now be required to pay N3 million. Meanwhile, Small Scale Mining Lease (SSML) applicants will have to pay N300,000 for the first two cadastral units. Additionally, the cost of obtaining an Exploration Licence (EL) has been set at N600,000 for the first 100 cadastral units. Quarry Lease (QL) will now attract a fee of N300,000, while reconnaissance permit is set at N300,000.
“In consultation with the industry, these new regulations have been introduced to discourage speculation and address the lack of funds, which hinders the federal government’s capacity to improve ease of doing business in the sector,” explained Mr. Alake.
The revised rates affect 268 items in the industry, including an annual service fee of N31,500 for the first time, N260,000 for a Small Scale Mining Licence (SSML), N500,000 for a Quarry Lease, and N1,250,000 for firms operating with a mining lease.
Furthermore, the new regulations also encompass mineral title applications, as well as the transfer, enlargement, surrender, and consolidation of mineral titles within the Mining Cadastral Office (MCO).
The government aims to maximise royalties from critical minerals like lithium and gold in order to boost the nation’s revenue base and make a significant contribution to economic development.
The rates for different types of lithium ores have been established based on their current market value, with corresponding royalties per tonne. Alongside lithium, the rates review also extends to services rendered by the Mining Cadastral Office and the Nigeria Geological Survey Agency (NGSA). The Ministry’s website will provide comprehensive details of the new rates regime, and the new rates are currently in effect.
Overall, these new rates are designed to foster a more transparent and viable environment in the mining sector, thereby attracting further investments and promoting sustainable growth. Detailed mining rates can be found on the Ministry’s website for further reference and review.
In conclusion, these measures underscore the government’s commitment to bolstering the mining sector and driving economic growth through the sustainable and responsible exploitation of Nigeria’s abundant mineral resources. The new regulations are anticipated to contribute significantly to the country’s economic development and provide a stable and predictable environment for investors in the Nigerian mining sector.